Introductory Rate Home Loans
What's an Introductory Rate Home Loan?
An Introductory Rate Home Loan (also known as an 'Intro Rate Loan') is a much lower interest rate loan for a set period of time, usually between one and three years, depending on the lender.
Having a low rate, variable interest rate home loan means:
• You can purchase your first home sooner, as you will be required to pay less interest and fewer fees.
• Usually offer interest rates of about one per cent below the standard variable rate depending on the lender.
Consider the following pros and cons before you decide on a basic home loan:
Advantages of an Introductory Rate Home Loan?
• Choice of repayments – Can be monthly, fortnightly or weekly
• Low interest rate - The interest rate is always lower than a standard variable rate loans.
• If you are on a tight budget, it can make your monthly repayment schedule easier to manage for the first period of the loan.
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Why Not use an Introductory Rate Home Loan?
• Once the introductory period expires the loan will automatically “revert” to a higher interest rate, usually the standard variable rate.
• Switching fees to a different loan can be much higher.
• Limited features, as this is meant to be a 'low frills' loan product, and is priced accordingly.
Other Loan Products include:
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